Nationwide cuts mortgage rates and fees

16 October 2009 / by Andy Davies

Nationwide is today launching a number of initiatives and rate cuts on its mortgages in a bid to make it easier for homebuyers to get on the housing ladder or purchase their next property.

Interest rates on various deals are set to be reduced by up to 0.19 per cent, while fees will also be cut.

Homebuyers looking for a mortgage deal of up to 95 per cent LTV will be able to benefit from reductions in Nationwide's two year and three year fixed mortgage deals.

For instance, its two year fixed rate mortgage with no fee has been reduced by 0.19 per cent to 3.99 per cent, while borrowers paying a fee of £495 upfront can enjoy an even lower rate of 3.79 per cent.

In addition, the building society is reducing the upfront fee paid for its three year fixed mortgage deal by £500 to £495.

Meanwhile, first time buyers will now have a choice to receive either a bigger discount on their reservation fee, with the discount doubling from £250 to £500, or they can continue to benefit from the £250 discount and have their legal fees paid instead.

To offer additional help to all home buyers, Nationwide is also introducing a combined reservation and free legal fee option, designed at helping people who wish to move house but are deterred by the cost of the initial fee.

Commenting, Andy McQueen, director Nationwide mortgages said: "The combination of rate cuts and fee offers we are announcing today should really help first time buyers and seasoned home owners. We are reducing the amount that they need to pay upfront and so hope we've removed a barrier which may have prevented people from buying a home."

While it is hoped these plans will offer help to new customers, Mr McQueen says Nationwide is also taking steps to reward existing customers.

"Existing Nationwide borrowers at the end of their deal will also benefit from fee and rate cuts, as well as continuing to benefit from one flat rate available up to 95% LTV on many products. Like all customers choosing a tracker, they also benefit from the ability to ‘switch & fix' for free during their deal should they wish to," he said.